Concurrently, Fitch has chosen to withdraw the ratings of GH Bank for commercial reasons.
KEY RATING DRIVERS
Government Support-Driven Ratings: The ratings are driven by Fitch's expectation of a high probability of extraordinary support from the Thai sovereign (BBB+/Stable), if needed. GH Bank is a state policy bank, set up under specific legislation to promote housing loan accessibility for borrowers who would have difficulty accessing credit from commercial banks.
Long and Successful Policy Role: GH Bank is fully owned by the state, and its strategic direction and management are controlled by Thailand's Ministry of Finance (MoF). It has a long record of fulfilling its policy mandate - it is the country's largest mortgage provider, with a market share of 32% at end-2021 (31%: 2020). We believe the bank's policy role would be difficult to transfer due to its proven expertise, close government linkages, and long-standing collaboration with the MoF.
Supportive Role during Pandemic: Fitch views that GH Bank's active support for its clients during the pandemic, such as via extended terms and reduced interest rates, is in line with its role as a policy bank with a public service mandate.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Not applicable, as the ratings have been withdrawn.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Not applicable, as the ratings have been withdrawn.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
GH Bank's ratings are linked to Thailand's sovereign ratings.
Additional information is available on www.fitchratings.com
Source: Fitch Ratings